In our last Number Cruncher we discussed howTFI International Inc. (TFII), Richelieu Hardware Ltd. (RCH) and BRP Inc. (DOO) are companies with decent short-term performance with valuation under their historical average.
Starting off with TFII
In the past 90 days, TFII’s SP score has been stable at 79. The SP score is derived from the Performance (88.7) and Risk (24.3) scores. The company has multiple decent factor scores but is most biased towards growth and quality, with scores of 82 and 72 respectively. TFII has a terrific track record with 5-year sales growth of 26.3% and 5-year EPS growth of 40.5%. Moreover, in the last year, the company’s EPS almost doubled its 5-year trend for both sales and EPS.
We can see that the company is a top performer when we compare it to its peers. The company does better than its peers both in terms of performance and risk making a clear choice
Continuing with RCH
ANRCH currently has an solid SP score of 79 which is stable since 90 days. The SP score is determined by their impressive performance (82.6) score and their risk (21.6) score. RCH has a strong bias tilt towards the quality factor, with scores of 79. Similarly to TFII, RCH has a robust track record of increased their sales and their earnings by 15.6% and 28% respectively.
The company had modest growth between 2018 and 2020 due to slugish economic growth, but has since increased its NOPAT by more more than 2 fold in a few years. On the other hand, the share price shows
Lastly, let’s look at DOO
DOO’s current SP score is 76, which has been stable over the past 90 days. The company’s SP score is determined through their promising Performance (79.6) score and unsatisfactory Risk (26.4) score. The company has a factor tilt towards quality with a respectable score of 76. DOO saw a decrease in EPS of 19.5% from last year, down from their 5-year growth average of 121.4%.
According to our system, DOO is currently trading at a high market value added level which represents high expectations from the market towards DOO compared to the last 5 years. Historical pricing suggests that CE’s stock may be overvalued at the moment despite the current price-to-earnings ratio being lower than its historical valuation.
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